Correlation Between Tradegate and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Tradegate and GALENA MINING at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tradegate and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and GALENA MINING LTD, you can compare the effects of market volatilities on Tradegate and GALENA MINING and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tradegate with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and GALENA MINING.
Diversification Opportunities for Tradegate and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tradegate and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and GALENA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALENA MINING LTD and Tradegate is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tradegate AG Wertpapierhandelsbank are associated (or correlated) with GALENA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALENA MINING LTD has no effect on the direction of Tradegate i.e., Tradegate and GALENA MINING go up and down completely randomly.
Pair Corralation between Tradegate and GALENA MINING
If you would invest 8,850 in Tradegate AG Wertpapierhandelsbank on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Tradegate AG Wertpapierhandelsbank or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. GALENA MINING LTD
Performance |
Timeline |
Tradegate AG Wertpap |
GALENA MINING LTD |
Tradegate and GALENA MINING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tradegate and GALENA MINING
The main advantage of trading using opposite Tradegate and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, GALENA MINING can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GALENA MINING will offset losses from the drop in GALENA MINING's long position.Tradegate vs. Morgan Stanley | Tradegate vs. Morgan Stanley | Tradegate vs. The Charles Schwab | Tradegate vs. The Goldman Sachs |
GALENA MINING vs. Amkor Technology | GALENA MINING vs. Cardinal Health | GALENA MINING vs. Summit Hotel Properties | GALENA MINING vs. Playtech plc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |